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--Strayer University Fourth Quarter New Enrollment Up 4%, Total
Enrollment Up 6%--

--Full Year 2017 New Enrollment Up 6%, Total Enrollment Up 6%--

--Full Year 2017 Revenue Up 3%--

--6% New and Total Enrollment Growth Anticipated for Q1 / Winter
2018--

--Strayer to Open New Macon, GA Campus in Q1, its First Since 2012--

--Stockholders Approve Merger with Capella, Close Anticipated in Q3--

Strayer Education, Inc. (NASDAQ:STRA) today announced financial results
for the period ended December 31, 2017. Financial highlights are as
follows:

Three Months Ended December 31:

For the fourth quarter, student enrollment at the Company's main
operating unit, Strayer University, increased 6% to 48,144 compared to
45,509 for the same period in 2016. New student enrollment for the
period increased 4% and continuing student enrollment increased 6%.

Revenue was $118.7 million compared to $119.3 million for the same
period in 2016, as higher enrollment was offset by lower revenue per
student due to higher scholarships during the fall term.

Income from operations decreased to $11.7 million from $19.7 million
for the same period in 2016, due to costs associated with the
Company's pending merger with Capella Education Company. Adjusted
income from operations increased 10% to $20.2 million from $18.4
million in the same period in 20161.

1
For more information on adjusted results and other non-GAAP financial
measures discussed in this press release, refer to the information on
pages 8 through 11.

The Tax Cuts and Jobs Act of 2017 reduced the corporate tax rate and
thus reduced the value of the Company's net deferred tax assets by
$11.4 million as of December 31, 2017. As a result, the Company
recorded a net loss of $6.5 million compared to net income of $11.7
million in the same period in 2016. Adjusted net income grew 18% to
$12.3 million from $10.5 million for the same period in 2016.

Earnings before interest, taxes, depreciation, and amortization
(EBITDA) was $16.7 million compared to $24.2 million in 2016. Adjusted
EBITDA increased 6% to $28.6 million from $26.9 million in the same
period in 2016.

Net loss per share was $0.61 compared to diluted earnings per share of
$1.07 for the same period in 2016. Adjusted diluted earnings per share
grew 15% to $1.09 from $0.95 for the same period in 2016. Diluted
weighted average shares outstanding increased 3% to 11,273,000 from
10,971,000 for the same period in 2016.

Year Ended December 31:

Revenues increased 3% to $454.9 million compared to $441.1 million for
the same period in 2016, principally due to higher enrollment
partially offset by lower revenue per student.

Income from operations was $52.2 million compared to $57.5 million for
the same period in 2016. Adjusted income from operations grew 4% to
$56.6 million from $54.3 million for the same period in 2016. Adjusted
operating income margin increased slightly to 12.4% from 12.3% for the
same period in 2016.

Net income was $20.6 million compared to $34.8 million for the same
period in 2016. Adjusted net income grew 8% to $34.9 million from
$32.3 million for the same period in 2016.

EBITDA was $70.9 million in 2017 compared to $75.3 million in 2016.
Adjusted EBITDA increased 4% to $88.7 million from $85.1 million in
the same period in 2016.

Diluted earnings per share was $1.84 for 2017 compared to $3.21 for
the same period in 2016. Adjusted diluted earnings per share grew 4%
to $3.11 from $2.98 for the same period in 2016. Diluted weighted
average shares outstanding increased 3% to 11,199,000 from 10,845,000
for the same period in 2016.

Balance Sheet and Cash Flow

At December 31, 2017, the Company had cash and cash equivalents of
$155.9 million and no debt. Cash flow from operations grew 26% to $56.2
million, from $44.5 million during 2016. Capital expenditures for 2017
were $18.1 million compared to $13.2 million for the same period in 2016.

For the fourth quarter of 2017, bad debt expense as a percentage of
revenues was 5.8% compared to 4.6% for the same period in 2016.

The Company had $70.0 million of share repurchase authorization
remaining at December 31, 2017. No shares were repurchased in the fourth
quarter of 2017.

Q1 2018 Outlook

Total enrollments at Strayer University for the first quarter 2018 are
anticipated to grow 6% to approximately 46,100 students from 43,387
students for the same period in 2016. New student enrollments and
continuing student enrollments are expected to increase approximately 6%
each. Revenue per student for the first quarter is expected to decrease
by approximately 5% due primarily to higher continuation of students
participating in new scholarship programs launched in the fall term
2017. Notwithstanding continued declines in revenue per student, the
Company expects year over year revenue growth in the first quarter.
Additionally, the Company expects the tax rate for the first quarter to
be in the range of 21% to 22%, excluding the impact of non-deductible
merger costs.

New Campus Openings

The Company announced today that it plans to open three to five new
campus locations in 2018. The first new campus, located in Macon,
Georgia, will open for the start of the spring academic term. The Macon
campus and subsequent new campuses will incorporate a new smaller
cost-efficient design intended to service a student body that values a
brick-and-mortar presence, even while taking an increasing majority of
their courses online.

Common Stock and Common Stock Equivalents

At December 31, 2017, the Company had 11,167,425 common shares issued
and outstanding, including 466,128 shares of restricted stock. The
Company also had 250,000 restricted stock units outstanding and 100,000
vested stock options outstanding.

Common Stock Cash Dividend

The Company announced today that it declared a regular, quarterly cash
dividend of $0.25 per share of common stock. This dividend will be paid
on March 19, 2018 to shareholders of record as of March 12, 2018.

Merger Update

On January 19, 2018, stockholders of both Strayer Education, Inc. and
Capella Education Company approved all proposals related to the pending
merger. On February 27, 2018, the U.S. Department of Education completed
its pre-acquisition review of the transaction without any material
conditions, and the U.S. Federal Trade Commission in November 2017
granted early termination of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976. The merger, which
is anticipated to close in the third quarter of 2018, is subject to the
satisfaction of customary closing conditions, including approval by the
Higher Learning Commission.

Conference Call with Management

Strayer Education, Inc. will host a conference call to discuss its
fourth quarter 2017 earnings results at 8:30 a.m. (ET) tomorrow morning,
March 2, 2018. To participate on the live call, investors should dial
(877) 303-9047 ten minutes prior to the start time. In addition, the
call will be available via live webcast. To access the live webcast of
the conference call, please go to www.strayereducation.com
15 minutes prior to the start time of the call to register. Following
the call, the webcast will be archived and available at www.strayereducation.com.

About Strayer Education, Inc.

Strayer
Education, Inc. (NASDAQ:STRA) is educating a more competitive and
qualified workforce by solving higher education's most challenging
problems. It includes Strayer
University, a regionally accredited institution that delivers
affordable degree programs for working adults, and a Top
25 Princeton Review-ranked executive MBA program through the Jack
Welch Management Institute. Non-degree web and mobile application
development courses are offered through the New
York Code + Design Academy. Strayer also transforms the workforces
of its corporate partners through customized degree and professional
development programs. By deploying innovative teaching methods and
technologies that enhance student learning outcomes, Strayer makes it
possible for working adults to acquire the skills they need to succeed
in today's rapidly changing economy.

Forward-Looking Statements

This press release contains statements that are forward-looking and are
made pursuant to the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such statements may be
identified by the use of words such as "expect," "estimate," "assume,"
"believe," "anticipate," "will," "forecast," "outlook," "plan,"
"project," or similar words. The statements are based on the Company's
current expectations and are subject to a number of assumptions,
uncertainties, and risks. In connection with the safe-harbor provisions
of the Reform Act, the Company has identified important factors that
could cause the Company's actual results to differ materially from those
expressed in or implied by such statements. The assumptions,
uncertainties and risks include the pace of growth of student
enrollment, the Company's continued compliance with Title IV of the
Higher Education Act, and the regulations thereunder, as well as
regional accreditation standards and state regulatory requirements,
rulemaking by the Department of Education and increased focus by the
U.S. Congress on for-profit education institutions, competitive factors,
risks associated with the opening of new campuses, risks associated with
the offering of new educational programs and adapting to other changes,
risks relating to the timing of regulatory approvals, the Company's
ability to implement its growth strategy, risks associated with the
ability of the University's students to finance their education in a
timely manner, risks associated with the Company's pending merger with
Capella Education Company, including the risk that the merger might not
be completed on the agreed terms or at all, and general economic and
market conditions. Further information about these and other relevant
risks and uncertainties may be found in the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 2017 and in its
subsequent filings with the Securities and Exchange Commission, all of
which are incorporated herein by reference and which are available from
the Commission. The Company undertakes no obligation to update or revise
forward-looking statements.

Adjustments to reconcile net income to net cash provided by
operating activities:

Amortization of gain on sale of assets

(281

)

(133

)

Amortization of deferred rent

(1,441

)

(1,780

)

Amortization of deferred financing costs

262

262

Depreciation and amortization

17,817

18,733

Deferred income taxes

(8,697

)

6,429

Stock-based compensation

10,767

11,627

Changes in assets and liabilities:

Tuition receivable, net

(1,453

)

(3,250

)

Other current assets

(3,949

)

(527

)

Other assets

(1,865

)

1,582

Accounts payable and accrued expenses

(262

)

4,468

Income taxes payable

(408

)

(629

)

Deferred revenue

7,018

8,212

Other long-term liabilities

(7,800

)

(9,451

)

Net cash provided by operating activities

44,510

56,155

Cash flows from investing activities:

Purchases of property and equipment

(13,161

)

(18,051

)

Cash used in acquisition, net of cash acquired

(7,635

)

—

Net cash used in investing activities

(20,796

)

(18,051

)

Cash flows from financing activities:

Payments of contingent consideration

(1,358

)

—

Common dividends paid

—

(11,416

)

Net cash used in financing activities

(1,358

)

(11,416

)

Net increase in cash and cash equivalents

22,356

26,688

Cash and cash equivalents - beginning of period

106,889

129,245

Cash and cash equivalents - end of period

$

129,245

$

155,933

Non-cash transactions:

Purchases of property and equipment included in accounts payable

$

349

$

1,734

Non-GAAP Financial Measures

In our press release and schedules, and on the related conference call,
we report certain financial measures that are not required by, or
presented in accordance with, accounting principles generally accepted
in the United States of America ("GAAP"). We discuss management's
reasons for reporting these non-GAAP measures below, and the press
release schedules that follow reconcile the most directly comparable
GAAP measure to each non-GAAP measure that we reference. Although
management evaluates and presents these non-GAAP measures for the
reasons described below, please be aware that these non-GAAP measures
have limitations and should not be considered in isolation or as a
substitute for income from operations, net income, earnings per share or
any other comparable financial measure prescribed by GAAP. In addition,
we may calculate and/or present these non-GAAP financial measures
differently than measures with the same or similar names that other
companies report, and as a result, the non-GAAP measures we report may
not be comparable to those reported by others.

Management uses certain non-GAAP measures to evaluate the Company's
financial performance because those non-GAAP measures allow for
period-over-period comparisons of its ongoing operations before the
impact of these items. These measures are Adjusted Income from
Operations, Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA), Adjusted EBITDA, Adjusted Net Income, and
Adjusted Earnings Per Share (EPS). We define Adjusted Income from
Operations, Adjusted Net Income and Adjusted EPS to exclude (1) fair
value adjustments related to the Company's acquisition of the New York
Code + Design Academy and the related tax effects, and adjustments to
the Company's reserve for leases on facilities no longer in use and (2)
charges associated with the Company's previously announced merger with
Capella Education Company and severance charges associated with a staff
reduction program. We define Adjusted Net Income and Adjusted EPS to
also exclude adjustments to the provision for income taxes which include
a reduction in the value of the Company's deferred tax asset as a result
of the impact of the Tax Cuts and Jobs Act of 2017. We define EBITDA as
net income before provision for income taxes, investment income,
interest expense, depreciation and amortization, and from this amount in
arriving at Adjusted EBITDA we also exclude the amounts in (1) and (2)
above and stock-based compensation expense. These non-GAAP measures are
reconciled to the most directly comparable GAAP measures on pages 9
through 11. Non-GAAP measures should not be viewed as substitutes for
GAAP measures.

STRAYER EDUCATION, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED INCOME FROM OPERATIONS, ADJUSTED NET INCOME,

AND ADJUSTED EPS

(Amounts in thousands, except per share data)

For the Three Months Ended December 31, 2017

Non-GAAP Adjustments

As Reported

(GAAP)

Fair Value

Adjustments (1)

Merger

Costs (2)

Deferred Tax

Asset (3)

As Adjusted

(Non-GAAP)

Income from operations

$

11,688

$

—

$

8,465

$

—

$

20,153

Investment income

342

—

—

—

342

Interest expense

161

—

—

—

161

Income before income taxes

11,869

—

8,465

—

20,334

Provision for income taxes

18,364

802

241

(11,375

)

8,032

Net (loss) income

$

(6,495

)

$

(802

)

$

8,224

$

11,375

$

12,302

(Loss) earnings per share:

Basic **

$

(0.61

)

$

(0.07

)

$

0.77

$

1.06

$

1.15

Diluted **

$

(0.61

)

$

(0.07

)

$

0.73

$

1.01

$

1.09

Weighted average shares outstanding:

Basic

10,701

—

—

—

10,701

Diluted

11,273

—

—

—

11,273

For the Three Months Ended December 31, 2016

Non-GAAP Adjustments

As Reported

(GAAP)

Fair Value

Adjustments (1)

Merger

Costs (2)

Deferred Tax

Asset (3)

As Adjusted

(Non-GAAP)

Income from operations

$

19,654

$

(1,260

)

$

—

$

—

$

18,394

Investment income

135

—

—

—

135

Interest expense

161

—

—

—

161

Income before income taxes

19,628

(1,260

)

—

—

18,368

Provision for income taxes

7,910

—

—

—

7,910

Net income

$

11,718

$

(1,260

)

$

—

$

—

$

10,458

Earnings per share:

Basic **

$

1.10

$

(0.12

)

$

—

$

—

$

0.99

Diluted **

$

1.07

$

(0.11

)

$

—

$

—

$

0.95

Weighted average shares outstanding:

Basic

10,616

—

—

—

10,616

Diluted

10,971

—

—

—

10,971

** Earnings per share data may not foot due to rounding.

(1)

Reflects reductions to the value of contingent consideration related
to the Company's acquisition of the New York Code + Design Academy
and the related tax effects.

(2)

Reflects charges associated with the Company's previously announced
merger with Capella Education Company and severance costs associated
with a staff reduction program.

(3)

Reflects a reduction in the value of the Company's net deferred tax
assets in connection with the passage of the Tax Cuts and Jobs Act
of 2017.

STRAYER EDUCATION, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED INCOME FROM OPERATIONS, ADJUSTED NET INCOME,

AND ADJUSTED EPS

(Amounts in thousands, except per share data)

For the Twelve Months Ended December 31, 2017

Non-GAAP Adjustments

As Reported

(GAAP)

Fair Value

Adjustments (1)

Merger

Costs (2)

Deferred Tax

Asset (3)

As Adjusted

(Non-GAAP)

Income from operations

$

52,209

$

(7,512

)

$

11,879

$

—

$

56,576

Investment income

1,079

—

—

—

1,079

Interest expense

642

—

—

—

642

Income before income taxes

52,646

(7,512

)

11,879

—

57,013

Provision for income taxes

32,034

(82

)

1,565

(11,375

)

22,142

Net income

$

20,612

$

(7,430

)

$

10,314

$

11,375

$

34,871

Earnings per share:

Basic **

$

1.93

$

(0.70

)

$

0.97

$

1.07

$

3.27

Diluted **

$

1.84

$

(0.66

)

$

0.92

$

1.02

$

3.11

Weighted average shares outstanding:

Basic

10,678

—

—

—

10,678

Diluted

11,199

—

—

—

11,199

For the Twelve Months Ended December 31, 2016

Non-GAAP Adjustments

As Reported

(GAAP)

Fair Value

Adjustments (1)

Merger

Costs (2)

Deferred Tax

Asset (3)

As Adjusted

(Non-GAAP)

Income from operations

$

57,472

$

(3,213

)

$

—

$

—

$

54,259

Investment income

462

—

—

—

462

Interest expense

642

—

—

—

642

Income before income taxes

57,292

(3,213

)

—

—

54,079

Provision for income taxes

22,490

(748

)

—

—

21,742

Net income

$

34,802

$

(2,465

)

$

—

$

—

$

32,337

Earnings per share:

Basic **

$

3.28

$

(0.23

)

$

—

$

—

$

3.05

Diluted **

$

3.21

$

(0.23

)

$

—

$

—

$

2.98

Weighted average shares outstanding:

Basic

10,610

—

—

—

10,610

Diluted

10,845

—

—

—

10,845

** Earnings per share data may not foot due to rounding.

(1)

Reflects reductions to the value of contingent consideration related
to the Company's acquisition of the New York Code + Design Academy
and the related tax effects, and adjustments to the Company's
reserve for leases on facilities no longer in use.

(2)

Reflects charges associated with the Company's previously announced
merger with Capella Education Company and severance costs associated
with a staff reduction program.

(3)

Reflects a reduction in the value of the Company's net deferred tax
assets in connection with the passage of the Tax Cuts and Jobs Act
of 2017.

STRAYER EDUCATION, INC.RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES

ADJUSTED EBITDA(Amounts in thousands, except per share
data)

Three Months Ended

December 31,

Year Ended

December 31,

2016

2017

2016

2017

Net income (loss)

$

11,718

$

(6,495

)

$

34,802

$

20,612

Provision for income taxes

7,910

18,364

22,490

32,034

Investment income

(135

)

(342

)

(462

)

(1,079

)

Interest expense

161

161

642

642

Depreciation and amortization

4,541

5,014

17,817

18,733

Stock-based compensation

3,437

3,058

10,767

11,627

Fair value adjustments (1)

(742

)

381

(946

)

(5,757

)

Merger related costs (2)

—

8,441

—

11,855

Adjusted EBITDA (3)

$

26,890

$

28,582

$

85,110

$

88,667

(1)

Reflects reductions to the value of contingent consideration related
to the Company's acquisition of the New York Code + Design Academy
and the related tax effects, and adjustments to the Company's
reserve for leases on facilities no longer in use.

(2)

Reflects charges associated with the Company's previously announced
merger with Capella Education Company and severance costs associated
with a staff reduction program.

(3)

Denotes non-GAAP financial measures. Please see pages 8-10 for more
detail regarding these adjustments and management's reasons for
providing this information.